Silver (XAG/USD) has seen its recovery stall just below the $75.00 resistance area on Wednesday, following three consecutive trading days of gains [1]. Despite this pause, the immediate upside bias remains intact, with downside attempts contained above $74.00 [1]. The precious metal has benefited from a cautious risk appetite, driven by growing hopes for a swift resolution to the war in Iran [1]. US President Donald Trump boosted market sentiment on Tuesday by stating his expectation that the war would end in two or three weeks, regardless of whether a deal with Iran was reached, and that the Strait of Hormuz would open 'automatically' after the US exit [1]. Following these comments, the US Dollar Index dropped nearly 1%, providing a significant boost to precious metals, including silver [1].
Technical analysis indicates a mildly bullish near-term bias for XAG/USD, with the pair trading at $75.11 [1]. The Relative Strength Index (RSI) stands at 62.25, signaling firm upside momentum, while the Moving Average Convergence Divergence (MACD) line remains above the signal line and the histogram is at positive levels, highlighting persistent buying pressure [1]. Bulls are struggling to break resistance at the $75.30 area, but positive indicators suggest further recovery is possible [1]. Recent price action points to the pair being in the C-D leg of a Gartley pattern, targeting the $80.00 psychological level, and potentially the area between mid-March highs at $82.60 and the 61.8% Fibonacci retracement level at $83.35 [1].
On the downside, attempts remain contained above $74.00, with key support at the March 26 low of $66.71 [1]. A confirmation below this level would invalidate the current bullish view and bring the March 23 low at $61.00 back into focus [1].
Silver's price movements are influenced by geopolitical instability, recession fears, and the behavior of the US Dollar, with a weaker dollar likely to propel prices higher [1].
CONCLUSION
Silver's bullish momentum is being tested at the $75.00 resistance, but positive technical indicators and supportive market sentiment suggest further upside is possible. The market is reacting to geopolitical developments and a weaker US Dollar, with key resistance and support levels closely watched. Investors should monitor the $75.30 resistance and $66.71 support for signs of a sustained breakout or reversal.